Question: Please do it by type not pics. 1.Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. Project Z

Please do it by type not pics.

1.Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent.

Project Z
Time: 0 1 2 3 4 5
Cash flow: $2,500 $650 $780 $950 $600 $400

PI=

Should the project be accepted or rejected?

rejected

accepted

2.Compute the PI statistic for Project Q if the appropriate cost of capital is 11 percent.

Project Q
Time: 0 1 2 3 4
Cash flow: $11,100 $3,400 $4,230 $1,570 $2,200

PI=

Should the project be accepted or rejected?

rejected

accepted

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